Rochester, NY · Member since 2016 · 107 posts · 19 votes
Good day everyone, this is my first time trying to rent to an individual with section8.
The potential renter is asking if i will be willing to collect an amount which would serve as hold on the apartment, during this time i will stop all showings of the apartment. I am willing to do that for 30days. In a situation where it takes longer than 30days for all the process to through with section8 and if these delays or extension were the fault of section8 or the potential renter, what happens next? will section8 pay me for exceeded days.
Can anyone give me a bit more insights to the process and an estimated duration of how long it may take.
I'm also looking for ideas on what would be the content of the hold agreements I plan to put together to provide clarity and protection for both parties
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
5y
May depend on the local area but generally speaking 30 days from paperwork submission to tenant moving in is enough. Just depends on your COVID backup to be honest. Sec 8 only pays from the date of move-in forward so they will not pay anything regarding a hold or an extension of a hold. Also, you need to be clear in writing what the rules are for the money you are collecting and how much is refundable and when and what happens to it when they move-in. Meaning is it converted to SD or just free money for you? I don't think that latter would fly.
I would not stop showing it either, you can make an agreement that you will hold it for them for 30 days but you will show it and if at the end of 30 days you want to move on cuz they are not ready, you return whatever portion is refundable and move on with a backup tenant if you want. Need to have the ability to find a backup tenant in case this one flakes or the Sec 8 process takes too long.
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
5y
Check your state law. In Virginia, our landlord tenant law specifically allows us to accept a reservation fee, and this is exactly what we do for SEC 8 tenants, since they can't sign the lease or pay the deposit until the property passes inspection. We have them sign a receipt. Here is the text of it.
Property Reservation Fee Receipt
$___________ was received from __________________________________
(applicant) on ___/___/___ as a Property Reservation Fee to take the property at
___________________________________ off the market and hold it for the applicant to occupy. Upon lease signing, this Property Reservation Fee (referred to as application deposit in the VRLTA) will be applied towards the rental deposit required in the lease. If the applicant fails to sign the lease, applicant will be liable for any expenses and damages that are a result of tenant’s failure to sign the lease. If expenses and damages, exceed the amount of the Property Reservation Fee paid, the entire fee will be forfeited by applicant. If Property Reservation fee paid exceeds expenses and damages, Landlord will provide applicant with an itemized list of damages and will refund any remaining fee. A Landlord’s expenses and damages include but are not limited to lost rental income, real estate commissions paid, and any other expenses related to the accepted applicant. Fees paid by the applicant in cash, certified check, cashier's check, or postal money order shall be refunded within 10 days, and all other forms of payment will be refunded within 20 days.
Housing Choice Voucher Recipient Holders - If tenant is a Housing Choice Voucher recipient holder, and the Housing Authority denies the requested rent, this Reservation Fee will be 100% refundable to the applicant. A failed inspection is not grounds for the reservation fee to be refundable unless the landlord refuses to cure the inspection fail items.